Neogen Ceremonially Breaks Ground on $70 Million Lansing Expansion

Rhea-AI Summary

On July 20, 2022, Neogen Corporation (NASDAQ: NEOG) held a groundbreaking ceremony for a $70 million expansion of its Lansing, Michigan food safety facility. The project aims to create up to 100 new jobs and enhance Neogen's manufacturing capabilities with a 175,000 sq. ft. building dedicated to new equipment and laboratory spaces. Construction is set to begin in September 2022, with completion expected by December 2023. This expansion, alongside merging operations with 3M's Food Safety business, marks a significant step for Neogen as it celebrates 40 years in operation.

Positive

• Investment of $70 million in facility expansion.
• Creation of 60-100 new jobs, increasing workforce from 650 to 750.
• Expansion enhances manufacturing and laboratory capabilities.

Negative

• None.

LANSING, Mich., July 20, 2022 /PRNewswire/ -- Neogen Corporation (NASDAQ: NEOG) held a ceremonial groundbreaking in anticipation of approvals on a $70 million expansion of their Lansing, Michigan, food safety facility.

President and Chief Executive Officer John Adent was joined by City of Lansing Mayor Andy Schor, as well as Neogen executives and Board of Directors members for the ceremony, marking the beginning of the 12–14-month construction project.

"Neogen is proud to call Lansing our corporate headquarters, and we are so happy to continue growing with the city that helped build us into the global company that we are today," Adent said. "This year, as we celebrate our 40th year of operations, we also celebrate a number of big steps forward for our company. This expansion, along with the merging of 3M's Food Safety business with our existing operations, will lead Neogen into a new era of growth. I want to thank the City of Lansing and the Greater Lansing area for continuing to support Neogen, and we are excited to continue growing together."

"Neogen's $70 million investment in Lansing will further Michigan's leadership in the life sciences and agribusiness sectors," Governor Gretchen Whitmer said of the project. "This new manufacturing facility will expand Neogen's footprint in Lansing and create up to 100 new good-paying jobs for Michiganders. Michigan's future is bright because of our hardworking, talented people and our innovative businesses, and investments like today's by Neogen will help us continue moving our state forward. I will work with anyone to keep growing our economy, creating good-paying jobs, and investing in every region of our great state."

The expansion is centered around the construction of a three-story dedicated manufacturing building located on E. Shiawassee Street, adjacent to other Neogen facilities. The 175,000 sq.-ft. space represents the company's investment in new manufacturing equipment and laboratory equipment for the test and release of products.

The expansion will create between 60–100 new jobs, raising Neogen's Lansing footprint from 650 employees to a maximum of 750. These highly skilled positions, which will be hired throughout the project, will range from Automation technicians and Operators to Process Engineers, Chemists, Quality Engineers, and Quality Technicians, as well as managers and supervisors.

This project will be made possible through close collaboration with the City of Lansing, Lansing Economic Development Corporation (LEDC), Lansing Economic Area Partnership (LEAP), the Michigan Economic Development Corporation (MEDC), and the Michigan Strategic Fund (MSF), as the company has applied for incentives needed to create these jobs and complete the project. 

The project is slated to begin in September 2022, with completion expected in December 2023, with validation and other progress taking place through 2024.

About Neogen

Neogen Corporation develops and markets comprehensive solutions dedicated to food and animal safety, operating with the intention to "Every day, protect the people and animals we care about." The company's Food Safety segment markets dehydrated culture media and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases, and sanitation concerns. Neogen's Animal Safety segment is a leader in the development of genomic solutions along with the manufacturing and distribution of a variety of animal healthcare products, including diagnostics, pharmaceuticals, veterinary instruments, wound care, and disinfectants, as well as rodent and insect control solutions.

CONTACT: Jerome Hagedorn, Vice President of North American Operations, 517.372.9200, JHagedorn@Neogen.com

View original content:https://www.prnewswire.com/news-releases/neogen-ceremonially-breaks-ground-on-70-million-lansing-expansion-301590262.html

SOURCE NEOGEN Corporation

FAQ

What is the purpose of Neogen's $70 million expansion project?

The expansion project aims to enhance Neogen's food safety facility in Lansing by adding new manufacturing and laboratory capabilities.

How many jobs will Neogen's expansion create in Lansing?

Neogen's expansion is expected to create between 60 to 100 new jobs in Lansing.

When is Neogen's facility expansion expected to be completed?

The expansion is expected to be completed by December 2023.

What is the size of Neogen's new manufacturing facility in Lansing?

The new manufacturing facility will cover 175,000 sq. ft.

What significant business move is Neogen making alongside the expansion?

Neogen is merging its operations with 3M's Food Safety business as part of its growth strategy.